Question

Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:

                                           % complete      % complete
                                units         DM           conversion 
work in process, April 1        18,000        38%             71%
units started during April      80,000
work in process, April 30       44,000        82%             47%

The cost of beginning work in process and the costs added during April
were as follows:

                                 DM         Conversion       Total cost
work in process, April 1      $ 51,764       $152,477         $204,241
costs added during April       191,452        232,125          423,577
total costs                    243,216        384,602          627,818

Calculate the conversion unit cost using the weighted average process
costing method.

Answer 1

--Conversion Unit Cost = $ 5.15 per equivalent unit

--Working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	54,000 [18000 + 80000 - 44000]	100%	54,000	100%	54,000
Units of ENDING WIP	44,000	82%	36,080	47%	20,680
Equivalent Units of Production			90,080		74,680
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          51,764.00		$                                152,477.00
Cost incurred during the period			$        191,452.00		$                                232,125.00
Total Costs		Costs	$        243,216.00	Costs	$                                384,602.00
Equivalent units of production		EUP	90,080	EUP	74,680
Cost per EUP			$              2.70		$                                      5.15 = Answer